How Brands Break The Fakes

We’ve all seen the reports on fake beauty products recently – it’s a topic that returns time and time again. But, I noticed that the recent publicity is very much about how the consumer can avoid making the mistake of buying fakes, and nothing at all about what beauty brands do to protect their customers.

Not only is it their intellectual property that’s being stolen, it’s their loyal customer base that’s being conned. Intellectual property is, basically put, “creations of the mind”, so inventions, writing, symbols, artistic works, names and images, and includes patent for inventions, trademarks and designs. You can see how IP is very relevant to not only the creativity of the beauty industry, but the hardware, too. So, shouldn’t it fall to the brands to be far more on it when it comes to destroying the fakers and their horrible products?

Two of the most copied brands are MAC and Benefit. So, that’s where I headed first to see exactly what they’re doing to stall the influx of fakes. I’ll preface this by saying there are certain restrictions on what can and can’t be told. The last thing that brands want to do is highlight their methods in such detail that the counterfeiters get tips on how to do it better!

Unsurprisingly, both MAC and Benefit are doing plenty behind the scenes to protect consumers from counterfeit goods. Lewis Rice, Senior Vice President, Global Security and Trademark Protection, for the Estee Lauder Companies (of which MAC is a part), explains. “We work with the UK Border Agency in an attempt to stop the products coming to the UK in the first place; once they’re there, we work with Trading Standards and the police to investigate and prosecute.” The Police Intellectual Property Crime Unit seized a shipping container in 2014 with over 4,700 counterfeit versions of a popular brands – foundation, gloss, shadows..you name it. More worryingly still they flag up that some fraudsters are selling counterfeit sun-cream – and guess what’s not in it.

Both MAC and Benefit also use private investigators as well as their own resources to identify counterfeiters. When it comes to on-line fraud, Lewis says, “We use internal resources, investigative agencies and also state of the art software to identify those trading on line. Once a counterfeit is suspected, we make test purchases to confirm that it is indeed counterfeit, and gather an evidential package to pass to law enforcement or to start a civil litigation.” Ian Marshall, Managing Director of Benefit UK, says, “We work with an investigation agency – all ex-police – and they do an amazing job at tracking down counterfeiters. But don’t forget, we have over 2000 Beauty Advisers across the country who report back if they spot any counterfeit products.” Fakes are often brought back to store by customers wondering why the product isn’t as good as promised.

I asked whether Lewis could give an example of a counterfeiter brought to justice, and indeed he could, and in fact, I remember this making headlines. “We tackle counterfeiting issues globally, and last year an Australian retailer was selling counterfeit MAC and Bobbi Brown products claiming they were authentic. We initiated an action in the Federal Court of Australia which was settled.” The rogue retailer was ordered to pay Estee Lauder Companies $1 million and to correct their advertising. Closer to home, in the UK in April this year, a man was sentenced to 13 months prison (suspended for two years with a community order) for selling thousands of fake products including MAC.

I spoke to Intellectual Property lawyer, Ed, to ask how difficult it is to bring the fakers to justice. He said, “It’s very expensive for brands to bring in IP lawyers – bigger brands will have their own in-house legal departments to deal with counterfeiting and IP issues. Mostly, brands will try to get Trading Standards to deal with counterfeiting because it doesn’t cost them as much money, but what that means for beauty product counterfeiting is that compared to many counterfeits, it’s a lower priority because it’s unlikely to be life threatening.”

When you realise that more serious things than beauty products are being faked out there such as steering wheels, baby car seats or boilers, you can see why a blusher that might give you a rash pales on the priority list. Ian points out, “Make up never used to be counterfeited – but as soon as beauty brands start to get big, it began to happen, and particularly when they enter global markets.” Interestingly, beauty was not seen as a lucrative counterfeit option in the way it is today, compared to handbags, for example, until trade to other countries began. When Benefit only existed in the UK and the US, counterfeiting wasn’t an issue for that particular brand.

Criminal counterfeiters copy the products that will make the most money in the least amount of time with the least amount of effort and, crucially, draws the least amount of attention – you can actually bulk buy counterfeit beauty products on-line to then trade on the streets. Moving from place to place, never staying anywhere long is not uncommon counterfeiter behaviour.

According to Ed, the sourcing and catching of counterfeiters isn’t too difficult – using investigative agencies – the dilemma is more whether to use up large sums of money to take a small trader through the courts, when there are bigger fish to fry. Trading Standards now have the power to recover profits from counterfeiters, so some costs can be recouped – and gives more incentive for brands to make the financial commitment.

I got in touch with David Kearns at Expert-Investigations, an agency that specialises in counterfeit, trademarking and copyright issues. David was able to explain their place in the process towards removing fake beauty from our streets and internet.

Investigation services are often called in by intellectual property lawyers and brands to do the ground work, so pounding the streets of local markets to seek out and buy products that look suspicious, or ordering suspect products from the internet. Naturally, they’ll keep all paperwork, email trails and relevant information which is then handed to the lawyers or brands who can begin legal action. It’s more usual, apparently, for brands to instruct lawyers who then instruct the investigators, but they’re the ones doing the initial nitty-gritty to get proof for IP lawyers to work with.

David told me that faking or counterfeiting is often seen as a victimless crime and brands are left to their own devices in protecting consumers (and their intellectual property). You can see why smaller brands don’t perhaps have big enough pockets to do the deep investigations that this often requires. However, David also pointed out that behind the scenes of counterfeiting is often far worse than we could imagine – the bottom line is that it’s organised crime and who knows who it could be benefitting (no pun intended!).

One of the most effective ways to reduce beauty counterfeiting is to stop it leaving the country of origin. Many brands work closely with global customs – China in particular, to stop goods ever leaving in the first place and Chinese customs is one of the few in the world that stop goods leaving as well as stop goods from entering. It’s fact that many fakes, although not exclusively, do come from China. “I’m confident we’re doing all we can to stop products at the source – our experience with Chinese authorities is that as long as you do your own leg-work, they’re very efficient at closing down these small units, crammed with packaging, equipment, printing materials as well as inferior quality ingredients,” says Ian Marshall, but he agrees that it’s a constant battle. “We always have to be one step ahead of them.”

Behind the scenes there are organisations such as The International Anti-Counterfeiting Coalition dedicated to stamping out fakers once and for all. Apparently, a large proportion of fake goods on our streets start their UK journey in Coventry, where the National Clearance Hub (a single site that handles movement of goods) lives.

It’s so easy to counterfeit beauty products – as soon as one dodgy site is taken down, another pops up so the battle is continual. When I started this feature I wondered why it was seemingly left to the consumer to tackle or avoid the fakers – now I know we’re in it together, and as beauty consumers, we should be reporting and avoiding fakes whenever possible in order to add weight to whatever brands are doing behind the scenes.

Interestingly, many brands really didn’t want to discuss the counterfeit issue – I’m thrilled with MAC and Benefit for being so open about it and the more brands that are open and actively alerting beauty consumers, the better. That way, we can help each other.

MAC has their own dedicated counterfeit reporting system that you can find HERE.

The Police Intellectual Property Crime Unit and feature on fake beauty is HERE.

 

 


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21 responses to “How Brands Break The Fakes”

  1. Thanks for this post, it was really informative! I have the stickers you’re showing and adore them, but I am totally aware of the problem counterfeiting represents. I stay away from buying cosmetics from unreputable sites (actually, I stick mainly to Feelunique), but have ordered an obvious fake from Buy in Coins just to see what’s going on in this department. The site I mentioned doesn’t sell the products as original ones (on the contrary – they hide any trademark in their pics) but what I got was an actual dupe of a Too Faced palette – down to the leaflet. Poor quality and strange scent are what you get – I couldn’t bring myself to use the products, of course. My test limits have a limit 🙂

    So, the best thing one can do to avoid fakes is stick to bigger sites and be veeeery careful on Ebay 🙂

  2. therese

    Some of the stuff I’ve seen here in Asia would make your eyes water! Not even fakes based on actual products but products made to look like exclusives from a certain brand (UD Naked 4 & 5 for example) which of course only this one retailer stocks. Singapore is very hot on fake products but elsewhere in Asia it’s just accepted as perfectly normal.

  3. josie

    Well done for highlighting this, when I was young and naive I bought some perfumes on eBay and they were all fakes – you have to be so careful!

    Josie XOXO
    Fashion Mumblr

  4. Helene

    Nice pictures – may I ask where are they taken from?

    1. Jane

      they’re stickers.. bought them on Ebay I think.

  5. Courtney

    Really informative post, thanks!

    prettymadthings.blogspot.co.uk

  6. This is really interesting to read, especially when you see so many products on sites such as Ebay and sometimes it is hard to tell if it is a genuine product x
    Emma | Emmys Blog

  7. I am impressed with MAC and Benefit are so open about the issue and if only more brands were it would help consumers, never mind the media. Some fakes are just so good, it is sometimes really hard to tell.

  8. Donna

    A well known one is the house party, think Tupperware etc. Invited to MAC or they will say just Make up party. I know people who come back swearing they have bought a MAC bundle of 5 or 6 items for £15!!!! I know they are fake but try to point this out, brick wall. Chanel is another one faked like mad.

  9. annie thyme

    I know brands like ugg and Swarovski have a page on their website listing authorized sellers. (both online and in store locations) The ugg website states specifically this is to ensure you don’t end up with counterfeit goods. Do the beauty brands do this as well to help direct people to where they can buy goods that are not counterfeit? It’s was very helpful when I was looking at purchasing as just googling nets you many results not on this list but some with comparable sale prices to authorizes dealers so it helped take the guess work out out.
    I love these more business/behind the scenes articles you’ve been doing more of Jane. They’re very interesting.

    1. Jane

      thanks Annie.. not sure that they do but both brands will be looking at the comments on this feature so hopefully they’ll look and learn x

  10. Linda

    Brilliant read. I remember the MAC Target thing and could never understand how such a large retailer got it so very wrong. You know I’ve a “Hermes” handbag that I love but never did I think of where the money I paid for it was going to. Great read.

  11. Joan

    I belong to several face book beauty selling/ swap pages and there seem to be more and more people selling fakes or wanting to know if they have bought fake items.

  12. tigerbabe68

    Very interesting piece, thank you. I used to be an IP investigator years ago and wondered why companies wouldn’t want to pursue it when we found fakes of their products then a few months later a swoop by Trading Standards would happen on the people we’d found!

  13. Jo

    Not to mention that if it is counterfeit, you don’t know what has been put in it. I’ve heard of people having bad reactions to counterfeit makeup.

  14. Nita

    I purchased some Calvin Klein lip glosses from a Famous Factory Shop. Got them out of the pack to find colours like ‘boy pencil’ pink and ‘ultimate black’ on a red. Totes fakes.
    Who should I report to, though? The shop didn’t care.

    1. Jane

      Calvin Klein is part of the Coty group – or you could try trading standards.x

  15. The company I work for are actually an IP business (semi-conductors, rather than beauty, but the concepts are the same). It’s amazing how interesting it all is and the things we have to think about.

    I always buy my beauty from proper websites. Although you might want to save £3-4 quid, it’s not worth the danger for me. I want to know what’s going on my face and I want the proper brands to get the money they deserve!

    Stephanie xxxx
    http://missstephanieusher.blogspot.co.uk/
    https://www.bloglovin.com/blogs/hope-freedom-love-3436251

  16. This is a very interesting topic indeed. I am picky with what I put on my face, so I am glad that not only the consumer has a role in this but also the brands are actively working against counterfeit products as well

  17. A fab informative post, and something that needs highlighting more as naive people think they may be buying the real deal. The lesson is that if something is too good to be true it probably is, don’t risk it.its good to know brands are dedicated to reducing fakes too.
    Lucy loves
    http://Www.lucyearnshaw.co.uk

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